Major Asian indices were around +1.25% higher overnight, led by a +1.9% gain in Australia. However, India fell -1.44% as the RBI didn’t cut rates as expected, their CPI came in at 10.4% y/y and Fitch cut its credit outlook on the country to negative. I still don’t believe inflation in China is subsiding as much as investors seem to perceive and that a major new easing is likely there anytime soon. Major European indices are mostly lower, led down by a -3.0% decline in Spain. Spanish equities are now down -23.9% ytd, which remains a huge red flag. The Bloomberg European Bank/Financial Services Index is falling -1.94%.

The euro currency continues to trade poorly and stocks are also not reacting well to the Greek news. Oil remains technically weak. I suspect global central bank stimulus/European fiscal union hopes are preventing an otherwise more serious decline in stocks today given what is going on in Spain. As I cautioned last week, I still suspect investors will become more focused on Spain/Italy, the US fiscal cliff and the headwinds for the upcoming earnings season as this week progresses. (XLF) is heavy today, but (XLK) trades well. I covered some index trading hedges on the open and I am positioned 75% net long.